The Government has announced proposals to cut ground rents to help homeowners in leasehold properties. Housing Secretary Michael Gove has launched a consultation that will set out options including capping ground rents at a so called “peppercorn” rate for existing leaseholders, freezing ground rents at current levels and capping the ground rents at a percentage
Homeowners may do this because it can:
- Give you access to funds following an increase in the equity of your property
- Provide an improved rate of interest following a change in circumstances since you first bought the property
- Provide better security in the form of a fixed-rate (if the previous mortgage was on a tracker or variable rate)
As there is no buyer or seller to deal with, it is often possible to complete a remortgage rapidly once the mortgage offer is issued. Typical times are around three weeks from a formal mortgage offer being issued by your bank.
Once your mortgage offer is formally issued by the lender, we will
- Provide you with advice on the legal aspects of the mortgage
- Manage the repayment of your existing mortgage
- Process the remortgage in accordance with your new lender’s requirements in an efficient way as possible.
- Provide you with a clear statement showing the net sums received and paid